Oil Output Spurs Record Quarterly Economic Growth in Senegal

(Bloomberg) -- Senegal’s economic growth rate surged to a record in the third quarter as the West African nation began exporting oil, with the International Monetary Fund predicting a 9.3% expansion next year.

Gross domestic product jumped 8.9% in the three months through September from the previous quarter, the National Agency of Statistics and Demography said. The economy expanded 11.5% in the period from the previous year.

Economic growth is poised to accelerate further as Senegal begins exporting gas from BP Plc’s Greater Tortue Ahmeyim liquefied natural gas project. That’s expected from the beginning of next year, according to Energy, Petroleum and Mines Ministry Secretary-General Cheikh Niane.

“First gas from the GTA project should give another growth spurt in first quarter 2025 but economic growth is likely to settle at a lower rate after this,” said Mark Bohlund, senior credit research analyst at REDD Intelligence. 

The economic expansion provides an opportunity to fix public finances in a nation that’s likely to see a budget shortfall of more than 11% of GDP this year.

The country’s dollar bonds were little changed on Monday, with notes maturing in 2033 rising 0.2 cent to 80.12 cents on the dollar at 10:33 a.m. in London. Securities due 2031 gained 0.2 cent to 89.8 cents on the dollar.

Senegal plans to reduce its budget deficit to 3% of gross domestic product by 2027 by cutting government expenditure and boosting tax collections from next year, Prime Minister Ousmane Sonko said last week.

Woodside Energy Group Ltd., Australia’s biggest oil and gas producer, started its first oil production at the Sangomar project offshore Senegal in June.

(Updates with analyst comment, bond performance from fourth paragraph.)

©2024 Bloomberg L.P.